Brokers have tackled HBOS over its dual pricing strategy on proc fees.
Speaking at the Mortgage Summit in Jerez June 21, Kevin Paterson, sales director at Park Row, called for compulsory and unified proc fees across the introducer market because there is a consistent battle over dual pricing among brokers.
Tom Cleary, director of Mortgage Find, accuses HBOS of being the worse dual pricing culprit, and points out that appointed representatives from Openwork are paid 0.4% proc fee compared to his directly authorised fee of 0.3%.
He says: This is unfair and gives Openwork a competitive edge. It is disrespectful to DA brokers and John Malone from PMS is so pissed off that he has semi-retired.
Although Charles Haresnape, managing director of mortgages at Bank of Scotland, defends dual pricing as historic but admits a redistribution of fees is possible in the future, another delegate asked if the reason Openwork is paid higher fees is linked to HBOSs three million pounds invested in the network.
Haresnape declined to comment.